AMG Critical Materials Raises 2026 EBITDA Target, Driven by Lithium in the Third Quarter
In the third quarter of 2026, AMG Critical Materials' lithium division generated adjusted EBITDA of $36.7 million, compared with $2.9 million a year earlier. This growth offset the decline in the vanadium and technologies divisions.
A year earlier, antimony had delivered exceptional profitability. This quarter, the group's growth rests mainly on the Brazilian lithium and tantalum mine.
Adjusted EBITDA Rises and Annual Target Is Raised
AMG Critical Materials published its third-quarter results on November 5, 2026. Revenue rose 8% to $471.5 million. Adjusted EBITDA increased 22% to $77.5 million, compared with $63.6 million a year earlier, and the adjusted EBITDA margin gained 1.8 points to 16.4%, compared with 14.6%.
Based on the first nine months, the group raised its 2026 adjusted EBITDA target to “approximately $280 million,” up from a previous range of $230 to $250 million. “We continue to expect positive free cash flow in 2026,” said Heinz Schimmelbusch, Chairman of the Management Board and Chief Executive Officer.
According to the group, the increase in adjusted EBITDA is mainly explained by the profitability of the lithium division. Its revenue rose 199% to $97.6 million, and it now generates nearly half of the group's adjusted EBITDA.
Three factors combined in Brazil. Sales volumes of lithium concentrate rose from 15,409 to 23,672 dry tonnes, and the average realized price increased from $530 to $1,300 per tonne CIF China. The average production cost stands at minus $62 per tonne, compared with $420 a year earlier.
This negative cost is largely due to production volumes, as well as the tonnage and price of tantalum, which is extracted from the same mine. According to management, demand from electronic applications, in the face of limited supply response, has pushed the price of tantalum to two and a half times its level of a year ago.
Net Income Up 75%, Supported by a Disposal Gain
Accounting aggregates are growing faster than adjusted indicators, due to one-off items. Operating income rose 77% to $63.8 million, and the operating margin increased from 8.3% to 13.5%.
This result includes a $25.6 million gain on the sale of Graphit Kropfmühl to Asbury Advanced Materials, finalized in July 2026. Adjusted EBIT, which excludes this gain, rose 15% to $53.9 million.
Conversely, reported gross profit increased only 1%, to $91 million, notably due to a $5 million inventory valuation adjustment linked to the decline in lithium prices. Excluding exceptional items, the adjusted gross margin rose from 20.2% to 21.1%.
Net income attributable to the group amounted to $22.8 million, compared with $13.1 million, and diluted earnings per share were $0.61, compared with $0.39. The tax charge rose from $7 million to $18 million as results improved.
Net financial expense also increased, from $14 million to $20 million, due to a non-cash accounting reclassification linked to the same disposal. For nine months, net income attributable to the group reached $63.5 million, compared with $29.6 million, on revenue of $1,440.4 million, compared with $1,261.8 million.
Operating activities used $6.2 million in the quarter, which the group attributes to the usual seasonality of working capital requirements. Net debt stood at $469.4 million as of September 30, down 8% from the end of 2025.
Total liquidity reached $550 million, consisting of $350 million in cash and $200 million available under the revolving credit facility.
Vanadium and Technologies Decline, Engineering Backlog at $366 Million
At AMG Vanadium, revenue rose 28% to $196.9 million, driven by higher volumes of ferrovanadium, chromium metal and titanium alloys. By contrast, the division's adjusted EBITDA fell 18% to $16 million.
The third quarter of 2025 had benefited from a $5 million insurance settlement following an equipment failure at Zanesville. The quarter under review also bore higher vanadium production costs and increased fixed costs linked to the ramp-up of the chromium plant in New Castle, Pennsylvania.
At AMG Technologies, revenue fell 29% to $177 million, and adjusted EBITDA dropped 40% to $24.8 million. This decline is due to lower antimony profitability, partly offset by the results of AMG Engineering.
AMG Engineering recorded $85 million in new orders, for an order-to-billing ratio of 0.80. Its backlog stood at $366 million as of September 30, compared with $391 million at the end of June.
The company's shares have been officially listed on the Frankfurt Stock Exchange since September 30. In October, the European Commission selected the Bitterfeld refinery and Zinnwald Lithium among strategic projects under the “Critical Raw Materials Act,” a decision the group had announced on October 9, 2026.
At Bitterfeld, AMG Lithium is continuing engineering work on a conversion unit with a capacity of 5,000 tonnes. Its investment cost is estimated at $50 million, of which 20% is expected to be covered by a grant from the German Federal Ministry for Economic Affairs and Energy.
